Harare (New Ziana) – The government has noted the existence of artificial shortages of some locally produced goods in formal retail shops whose prices are indicative of speculative and forward pricing, a Cabinet Minister has said.
Briefing the media at the end of the 14th Cabinet meeting on Tuesday, Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa said it had been observed that prices in the formal retail sector are relatively high in both US and ZWL terms when compared to the informal retail sector.
“From the survey undertaken, most basic commodities are generally available both in formal and informal retail shops, although there are artificial shortages observed of some locally produced goods especially in formal retail shops,” Mutsvangwa said, citing a report to Cabinet by Industry and Commerce Minister, Sekai Nzenza.
“From the investigation, prices in formal retail sector are relatively high in both US and ZWL terms when compared to the informal retail sector and are thus indicative of speculative and forward pricing. Consumers are being forced to buy goods that they don’t need in formal retail outlets when they pay using USD so that they may offset the change balance. This is because the retail outlets are refusing to mix USD and Z$ transactions.”
The report comes soon after the government announced measures to stablise the exchange rate and macroeconomic situation with some imported basic commodities no longer subject to import duties, in order to enhance their supply and availability at competitive prices.
Mutsvangwa said the government continues the task of promoting local industry, quality, standards, and competitiveness, while endeavouring to protect consumers from unfair trade practices. As a result, the manufacturing sector had shown a positive trajectory with capacity utilization currently at 66 percent from 36 percent before COVID-19 and shelf occupancy at 80 percent, from 47 percent before COVID-19.
She said the Quality Assurance and Trade Measures Department is conducting an enforcement blitz on the quality and measurements of basic commodities with offending businesses being penalized while the Consumer Protection Commission (CPC) is creating a hotline that will receive and respond to complaints from consumers to mitigate against unfair trading practices in the market.
Enforcement against collusion on pricing by the Competition and Tariff Commission was also being ramped up to address the unfair business practices which have become rampant in the economy with the Ministry of Industry and Commerce preparing to conduct an evidence based research within seven days in collaboration with the National Competitiveness Commission, Competition and Tariff Commission and the Consumer Protection Commission and all other relevant stakeholders to ensure that consumers continue to access basic commodities at affordable prices.
“The Ministry will expedite the amendment of the Competition and Tariff Act and the drafting of the Consumer Protection Regulations in order to come up with enforcement mechanisms to address the unfair business practices in the economy,” said Mutsvangwa, adding that import duty on the 14 basic commodities will remain suspended for six months while the Grain Marketing Board’s Silo Food Industries will be producing and selling mealie-meal at affordable prices.
“Finally, the nation is being informed that the foreign currency auction system is being reviewed, while ICT systems will be deployed to promote more usage of swipe cards in the economy,” she said.
Source: New Ziana
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